REPORTS TO PROJECT WORKERS' BENEFITS

The head honcho from Social Security stopped in South Florida on Friday to plug the new Social Security statement, show workers how to use it and try to ease fears they may have about the program's future.

"My own belief is that Social Security will be there in the future, and it will be very strong," even if changes need to be made in the system, Social Security Commissioner Kenneth S. Apfel said.

As of Oct. 1, the estimated 125 million American workers 25 and older not already drawing benefits will begin receiving annual statements from Social Security.

The statements, expected to arrive about three months before each worker's birthday month, will include an estimate of their monthly retirement benefits at early retirement, or age 62; full retirement, which is anywhere from 65 to 67, depending on when they were born, and delayed retirement, or age 70.

The statements also will include a projection of the benefits workers would receive if they became disabled, and benefits family members would receive if the workers died.

"Our goal is to educate Americans about Social Security and help people do financial planning, and the two issues go together," said Apfel, who is touring the country to unveil and publicize the new statements.

The statements should help workers decide the best age for them to retire. The projected benefits, given in current dollars, assume workers will continue to work until retirement and make the same each year as the latest earnings shown on their record.

Workers who want a customized statement, projecting either higher or lower earnings in the future, can still ask for one by calling Social Security at 800-772-1213 or going to the agency's Web site at www.ssa.gov. Social Security has responded to 37 million requests for customized statements in the past 12 years.

"We actually anticipate an increase in the number of people who ask for customized statements" once all workers start receiving the regular statement, Apfel said. Those who get a customized statement will not get the regular one that year.

Under current law, Social Security retirement benefits can start as early as age 62 and are based on each worker's 35 best years of earnings. Apfel said that for people in their 50s, the estimates in the new statements "provide a very adequate projection" of future benefits.

For younger workers, particularly those in their late 20s and early 30s, the projections will be "less precise," Apfel said, because future earnings are harder to predict and also because of possible changes in Social Security.

Under current projections, benefit payments will begin to exceed taxes paid in 2014.

Apfel said there is a growing consensus that the Social Security program is extremely important and that its long-term financing problem is manageable if action is taken now. Also, he said there needs to be a "foundation of protection" providing an inflation-adjusted retirement benefit for older Americans for as long as they live. Other areas of general agreement: Personal retirement savings need to be strengthened, and any surplus in the Social Security program should be used for Social Security, Apfel said.

But there are still "fundamental disagreements" as to how best to solve the system's long-term financial problems, he said, and prospects for an agreement on Social Security reform this year are growing dim.

"I hope not, but it is possible this issue may take another couple of years to resolve," he said.

Humberto Cruz can be reached c/o Sun-Sentinel, 1800 N. Commerce Parkway, Suite 1, Weston FL 33326 or at 954-356-4677 or e-mail hcruz@sun-sentinel.com or through his Web site at www.sun-sentinel.com/money.